The Kraft Heinz Company, backed by Berkshire Hathaway, has given the green light to a significant share repurchase program. The plan authorizes the company to buy back up to $3 billion of its outstanding common stock by December 26, 2026.
Under this share repurchase initiative, Kraft Heinz aims to use excess cash after allocating funds for disciplined capital spending. This includes investments to support organic growth in strategic areas of its business, the payment of a competitive dividend, maintaining a targeted Net Leverage of approximately 3.0x, and evaluating various strategic opportunities such as acquisitions, divestitures, and partnerships.
Miguel Patricio, CEO, and Chair of the Board at Kraft Heinz, emphasized the company’s recent transformation milestones in the third quarter. He stated, “In the third quarter, we hit a milestone in our transformation — reaching our targeted Net Leverage of approximately 3.0x. A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity.”
© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.